Noble Energy Executes Leviathan Gas Sales Contract With the National Electric Power Company of Jordan
September 26 2016 - 6:00AM
Noble Energy, Inc. (NYSE:
NBL) (“Noble Energy” or
“the Company”) today announced the execution of a gas sales and
purchase agreement (GSPA) to supply natural gas from the Leviathan
field to the National Electric Power Company Ltd. (NEPCO)
of Jordan for consumption in power production facilities.
Under terms of the GSPA, Noble Energy and the Leviathan
partners will supply a gross quantity of approximately 1.6 trillion
cubic feet (Tcf) of natural gas from the Leviathan field, or 300
million cubic feet per day (MMcf/d) over a 15-year term. The
buyer has an option to purchase an incremental 50 MMcf/d for a
total of up to 350 MMcf/d.
Natural gas supplied under this agreement will include
industry-typical take-or-pay commitments, with pricing linked to
Brent oil and a firm floor price. Gross contract revenues are
estimated to be approximately $10 billion.
This GSPA follows a previously-announced agreement with the
Jordan Bromine Company and the Arab Potash Company, which will
establish first gas exports to Jordan from the Tamar field in late
2016.
J. Keith Elliott, Senior Vice President, Eastern Mediterranean,
commented, “We look forward to supplying natural gas resources for
energy and economic development to the people of Jordan. This
first export GSPA for Leviathan further underpins the volumes
supporting project sanction. Including Israel sales
contracts, this brings total contracted volumes to between 400
MMcf/d and 450 MMcf/d. The approved Plan of Development
incorporates an expandable platform, which will enable us to
accelerate Leviathan first gas while maintaining the ability to
increase production capacity to meet growing future demand.
While continuing to advance negotiations with additional
Israeli industrial and power companies and other regional
customers, we are also progressing the other work streams necessary
for a Final Investment Decision as early as the end of 2016.”
The Company expects to complete construction and field
development to deliver first gas from Leviathan in as little as
three years following sanction. Subject to regulatory
approvals from Israel and Jordan, sales to NEPCO are anticipated to
commence at field startup. The initial Leviathan field
development will be a subsea tie-back to a shallow-water platform
with a pipeline connection through to Jordan.
Noble Energy operates Leviathan with a 39.66 percent working
interest. Other interest owners are Delek Drilling with 22.67
percent, Avner Oil Exploration with 22.67 percent, and Ratio Oil
Exploration (1992) Limited Partnership with the remaining 15
percent. The Leviathan field has an estimated 22 Tcf of
recoverable natural gas resources.
Noble Energy (NYSE: NBL) is an independent oil
and natural gas exploration and production company with a
diversified high-quality portfolio of both U.S. unconventional and
global offshore conventional assets spanning three continents.
Founded more than 80 years ago, the company is committed to safely
and responsibly delivering our purpose: Energizing the World,
Bettering People’s Lives®. For more information, visit
www.nobleenergyinc.com.
Forward Looking Statements
This news release contains certain “forward-looking statements”
within the meaning of federal securities law. Words such as
“anticipates”, “believes”, “expects”, “intends”, “will”, “should”,
“may”, and similar expressions may be used to identify
forward-looking statements. Forward-looking statements are not
statements of historical fact and reflect Noble Energy’s current
views about future events. They may include estimates of oil
and natural gas reserves, estimates of future production,
assumptions regarding future oil and natural gas pricing, planned
drilling activity, future results of operations, projected cash
flow and liquidity, business strategy and other plans and
objectives for future operations. No assurances can be given
that the forward-looking statements contained in this news release
will occur as projected and actual results may differ materially
from those projected. Forward-looking statements are based on
current expectations, estimates and assumptions that involve a
number of risks and uncertainties that could cause actual results
to differ materially from those projected. These risks include,
without limitation, the volatility in commodity prices for crude
oil and natural gas, the presence or recoverability of estimated
reserves, the ability to replace reserves, environmental
risks, drilling and operating risks, exploration and development
risks, competition, government regulation or other actions, the
ability of management to execute its plans to meet its goals and
other risks inherent in Noble Energy’s business that are discussed
in its most recent annual report on Form 10-K and in other reports
on file with the Securities and Exchange Commission. These reports
are also available from Noble Energy’s offices or website,
http://www.nobleenergyinc.com. Forward-looking statements are based
on the estimates and opinions of management at the time the
statements are made. Noble Energy does not assume any
obligation to update forward-looking statements should
circumstances, management’s estimates, or opinions change.
The Securities and Exchange Commission requires oil and gas
companies, in their filings with the SEC, to disclose proved
reserves that a company has demonstrated by actual production or
conclusive formation tests to be economically and legally
producible under existing economic and operating conditions. The
SEC permits the optional disclosure of probable and possible
reserves, however, we have not disclosed the Company’s probable and
possible reserves in our filings with the SEC. We use certain terms
in this news release, such as “recoverable natural gas resources,”
which are by their nature more speculative than estimates of
proved, probable and possible reserves and accordingly are subject
to substantially greater risk of being actually realized. The SEC
guidelines strictly prohibit us from including these estimates in
filings with the SEC. Investors are urged to consider closely the
disclosures and risk factors in our most recent annual report on
Form 10-K and in other reports on file with the SEC, available from
Noble Energy’s offices or website,
http://www.nobleenergyinc.com.
Investor Contacts:
Brad Whitmarsh
(281) 943-1670
brad.whitmarsh@nblenergy.com
Megan Repine
(832) 639-7380
megan.repine@nblenergy.com
Media Contacts:
Reba Reid
(713) 412-8441
media@nblenergy.com
Paula Beasley
(281) 876-6133
media@nblenergy.com
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